GED Economic by Sir.YOLO

Indicate the worker whose income is not based on the number of hours worked

• Donna: hourly wage plus productivity bonus

• Julian: part time low hourly wage plus tips

• Gerald: full time, weekly salary

• Marina: commission

Indicate the worker whose total income includes a guaranteed base salary plus incentives based on output.

• Donna: hourly wage plus productivity bonus

• Julian: low hourly wage plus tips

• Gerald: full time, weekly salary

• Marina: commission

Profit, which is the incentive for entrepreneurs to open a business, is comparable to what other kind of payment?

• interest

• rent

• taxes

• wages

What federal agency has among its missions ensuring competition?

• Consumer Product Safety Commission

• Federal Trade Commission

• Commerce Department

• Fair Trade Commission

What label should be placed at location A?

• Demand

• Price

• Quantity

• Supply

What label should be placed at location B?

• Demand

• Price

• Quantity

• Supply

Indicate the drawing that represents the factor of production of physical capital.

• Factor 1

• Factor 2

• Factor 3

• Factor 4

Answer explanation

Physical capital includes machinery.

How does the investment of capital lead to economic growth?

• by increasing demand

• by increasing specialization

• by reducing opportunity cost

• by increasing productivity

Answer explanation

Capital investment typically refers to acquisition of machinery or manufacturing plants that increase productivity.

Which is an example of investment in human capital?

• buying new computers for an office

• building new housing

• providing training classes for employees

• instituting more efficient production processes

An auto loan is the type of credit called ............ in which the borrower pays a set amount each month until the loan is paid off.

• installment credit

• open credit

• revolving credit